Question

Bennett Corporation has the following data as of December​ 31, 2018​:

Total Current Liabilities $51,670
Total Stockholders' Equity $ ?
Total Current Assets 25,680
Other Assets 45,600
Long-term Liabilities 143,010
Property, Plant, and Equipment, Net 249,000

Compute the debt to equity ratio at December​ 31, 2018.​

Answer 1

1.55

Step-by-step explanation:

Total assets:

= Total Current Assets + Other Assets + Property, Plant, and Equipment

= 25,680 + 45,600 + 249,000

= $320,280

Total liabilities:

= Total Current Liabilities + Long-term Liabilities

= $51,670 + $143,010

= $194,680

Stockholder's equity:

= Total assets - Total liabilities

= $320,280 - $194,680

= $125,600

Debt to equity ratio:

= Total liabilities ÷ Stockholder's equity

= $194,680 ÷ $125,600

= 1.55